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Alexium International Group Secures U.S. Army Supply Agreement For Protective Materials

Alexium International Group (ASX: AJX, AX: AJX, OTC QX: AXXIY) has secured a supply agreement with the United States Army for materials that repel water, oil and Chemical Warfare Agent (CWA) simulants.

The company will supply the Natick Soldier System Centre with about 600 metres of various materials that have been treated with Alexium's Cleanshell CB repellency treatment.

Over the past nine months Alexium has optimised its Cleanshell treatment to increase the repellency of CWA, with the ability to offer protection for days.

This compares very favourably to earlier versions of Cleanshell and conventional fluorocarbon repellency finishes which only offer minutes of protection against CWA.

The improvements target repellency for organophosphate-based simulants such as tributylphosphate.

Alexium chief operating officer and executive director Stefan Susta said the company was excited over the potential of the new treatment.

"These technology demonstrations, and the extensive testing, which includes live agents, are critical to further validating the technology and transitioning our treatments to Army systems," Susta said.

Reactive Surface Treatment agreement

Alexium has a Cooperative Research and Development Agreement with the U.S. Air Force Research Laboratory in Florida to develop and commercialise the patented Reactive Surface Treatment (NYSE:RST) technology.

RST is a process, developed initially by the U.S. Department of Defense, which allows for the surface modification and attachment of nanoparticles or multiple chemical functional groups to surfaces or substrates to provide functions such as water proofing, oil proofing, anti-microbial, non-stick and UV protection.

Specifically, this collaboration will explore the RST technology on a variety of materials, integrate nanoparticles developed by the Air Force in various RST treatment applications, and demonstrate a commercially feasible and scalable production process.

This collaboration is expected to result in greater soldier protection from chemical and biological threats, and improved materials used in military and commercial applications.

Analysis

With an OTCQX listing assisting investors in the key U.S. investor market, this is a stock to watch.

Alexium has high value applications involving speciality fibres. High molecular weight polyethylene (HMWPE) and aramid fabrics for example, are being increasingly employed in composites and other technical applications, areas where we believe RST coatings could be highly beneficial.

Alexium's repellency treatment on nylon fabric Environmentally-friendly flame retardant coatings (NYSE:FR) for selective synthetic fabrics is another exciting market where Alexium felt that the RST process offered exceptional opportunities.

Alexium's business model is based on licensing the RST treatment technology to commercial partners, and/or to jointly develop products for both the military and commercial sectors.

The company's strong relationship with the U.S. Department of Defense holds it in good stead to win contracts under programs to provide protective suits for military personnel.

The company looks to have an exciting future ahead of it with a very light valuation given the wraps and perception of the value of the technology in licensing deals.